UPDATE 1-Microsoft's Hotmail, Outlook.com services back up after outage

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(Adds Microsoft statement)

By Eric Auchard

FRANKFURT, Sept 18 (Reuters) - Microsoft Corp said its free email services Outlook.com and Hotmail, which suffered an outage across Europe on Monday, were back up.

"Everything is up and running," Microsoft said in a blog post on its Office 365 security site. bit.ly/2w3X1LD

The outage began at 0720 GMT and continued to affect users across the region for more than 12 hours, preventing them from sending and receiving emails, Microsoft said in a blog post on its Office 365 security site.

Microsoft said the issue involved part of the company’s internet traffic load-balancing system which was gobbling up server capacity despite no apparent increase in user traffic.

Outage reports were concentrated in Western Europe and Britain, according to DownDetector.co.uk, an outage reporting site. No other major Microsoft online services appeared to be affected. (Reporting by Eric Auchard in Frankfurt, additional reporting by Subrat Patnaik in Bengaluru; Editing by Edmund Blair and Gopakumar Warrier)